UNDERSTANDING SUPPLY CHAIN & SUPPLY CHAIN STRATEGIES

INTRODUCTION TO SUPPLY CHAIN MANAGEMENT

Facilities

Facilities include things like factories, warehouses, and transit hubs. They are the actual

or physical locations where the products are either manufactured, kept, or held up for

distribution. Optimizing production and distribution facilities' architecture, design, and capacity

is a key component of good facility management since it helps the business meet consumer

demand economically. Managing the connections with suppliers and other stakeholders to

guarantee the timely delivery of raw materials and any other input required for production is

another aspect of facilities management.

Supply Chain Strategy Key Objectives

The key objectives of supply chain strategy are to reduce costs, improve customer

service, increase efficiency, and enhance agility. These goals collectively contribute to the

overall success and competitiveness of a company in the dynamic business environment.

Reducing costs

Reducing costs is a key objective in supply chain strategy. This involves finding ways to

streamline and optimize the entire supply chain process, from sourcing raw materials to

delivering finished products. By identifying and implementing cost-effective practices,

companies can enhance their profit margins, making their operations more financially

sustainable.
Improving customer service

Ensuring that products reach customers on time and in good condition. When customers

receive what they expect, when they expect it, and in excellent condition, it leads to higher

satisfaction and loyalty. Happy customers are more likely to repeat business and recommend the

company to others.